Openai Board Chair Bret Taylor Agrees With Sam Altman's AI Bubble View But Says That's How The Market Works

Bret Taylor, board chair at OpenAI and CEO of AI agent startup Sierra has said that he agrees with Sam Altman that the AI industry might be in a bubble, but it might not be as bad as it is made out to appear.

In an interview with The Verge, published Thursday, Taylor noted that while AI will undoubtedly transform the economy, creating value for its developers and users, many companies will also incur losses.

"I think it is both true that AI will transform the economy, and I think it will, like the internet, create huge amounts of economic value in the future," Taylor said.

"I think we're also in a bubble, and a lot of people will lose a lot of money. I think both are absolutely true at the same time, and there's a lot of historical precedent for both of those things being true at the same time."

He likened the current AI boom to the late '90s dot-com boom and the subsequent bust. Although many firms collapsed, "in a way, everyone in 1999 had the right idea," he said.

Few people have had a career in tech as successful as Taylor's. He was an early engineer at Google and founded startups that he sold to Facebook and Salesforce. He also served as the CTO of Facebook and co-CEO of Salesforce.

Last month, OpenAI's Sam Altman spooked investors when he said he sees an "AI bubble" forming. A bubble generally refers to a period of excessive investment and inflated optimism in an asset or sector, often without a sustainable basis for long-term returns.

"Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes. Is AI the most important thing to happen in a very long time? My opinion is also yes," Altman had said.

Investors are paying close attention to remarks from AI leaders, having committed vast sums to this emerging field. Tech giants like Google, Meta, and Amazon are pouring billions annually into building AI capacity-bets that will pay off only if the technology achieves widespread adoption.

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